Cemig jumps as partner Vale signals bid for Brazil dams

Reuters Staff

1 Min Read

SAO PAULO (Reuters) - Shares in Cia Energética de Minas Gerais SA posted their biggest intraday jump in three weeks on Tuesday, on optimism the debt-laden Brazilian power utility could participate in an upcoming auction for the licensing rights of several hydropower dams it recently lost.

Common shares of the utility known as Cemig rose as much as 4.6 percent to 8.95 reais in midmorning trading in São Paulo, the biggest gain since Aug. 22.

In a statement to Reuters, Vale SA - a Cemig partner in electricity joint venture Aliança Geração de Energia SA - said the latter could participate in the auction of three of the four dams that will be auctioned off on Sept. 27. The Miranda, São Simão, Jaguara and Volta Grande dams have a combined generation capacity of 2.9 gigawatts.